CBUAE: Gross banks’ assets rise to AED 5,024.1 B by July 2025

Money supply aggregate M1 increases slightly

Money supply aggregate M1 grew by 0.3%, increasing from AED 1,026.2 billion at the end of June 2025 to AED 1,029.5 billion at the end of July 2025. This change was driven by a AED 6.8 billion rise in monetary deposits, despite a AED 3.5 billion decrease in currency circulation outside banks.

Growth in money supply aggregates M2 and M3

Aggregate M2 rose by 0.6%, from AED 2,531.2 billion to AED 2,546.9 billion, influenced by the higher M1 and a AED 12.4 billion increase in Quasi Monetary Deposits. Similarly, M3 increased by 0.8%, from AED 2,997.6 billion to AED 3,022.2 billion, due to the rise in M2 and an AED 8.9 billion increase in government deposits.

Monetary base sees moderate growth

The monetary base grew by 0.5%, from AED 860.0 billion to AED 864.0 billion. This was driven by a 44.5% increase in banks & OFCs’ current accounts and overnight deposits at CBUAE, along with a 12.9% rise in monetary bills and Islamic certificates of deposit, which offset declines in currency issued (-2.6%) and reserve accounts (-24.9%).

Increase in gross credit and bank deposits

Gross credit expanded by 1.4%, from AED 2,334.3 billion to AED 2,366.2 billion, supported by domestic credit growth of AED 21.0 billion and foreign credit growth of AED 10.9 billion. Domestic credit increases were seen across the government sector (5.2%), public sector (1.5%), private sector (0.5%), and non-banking financial institutions (2.5%).

Bank deposits rose by 1.1%, from AED 3,045.8 billion to AED 3,080.3 billion, with resident deposits growing by 1.1% to AED 2,820.6 billion and non-resident deposits by 1.0% to AED 259.7 billion. Within resident deposits, government sector deposits increased by 2.9%, government-related entities by 5.0%, and private sector by 0.7%, while non-banking financial institutions saw an 11.1% decrease.